Volume 8 • Issue 4 • 1000362 Arabian J Bus Manag Review, an open access journal
ISSN: 2223-5833
Research Article Open Access
Arabian Journal of Business and
Management Review
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ISSN: 2223-5833
Pratistha, Arabian J Bus Manag Review 2018, 8:4
Keywords: Strategic control; Strategy orientation; Business
environment; Competitive strategy; Business performance
JEL Classification: M 0
Introduction
In recent years, strategic control, strategy orientation, business
environment, and competitive strategy continue to focus on academic
and business interests [1-4]. is study examines how competitive
strategy mediates the effect of strategic control, strategy orientation,
and business environment. e examination of strategic control was
based on Pratistha‘s [3] scheme. Similarly for strategy orientation and
business environment, this study examine the dimensions of both from
the previous studies [4-7]. And for competitive strategy’s dimension
used scheme Porter’s [8] from. Most study analyze the influence
of strategic control on business performance [9-15]. e using of
strategic control scheme can make the company run well all budget
year long. is scheme is also looking for that dimension that can give
the most contribution for the strengthening business performance.
Strategic control play significant role for company in achieving
the goals [10]. Strategy orientation selection also can influence on
business performance [16-24]. omson [25] also explained that strategy
orientation is so important to face competitive business environment by
critically explore company’s resources and achieve competitive advantage.
Business environment must be a crucial factor for company to increase
their overall performance [26-30]. Gul [31] shared the views about
business environment and stated that it is a source which well accepted
the uncertainty of environment that can impact the business performance.
e competitive strategy appointed by the company has significant
influence for the achievement of company’s business performance
[16,19,28,32]. Slater et al., [21] then explained that competitive strategy
has relation with pattern of managerial’s choice to create the market,
serve the market’s wants, and how the business create more value for the
customer than competitors do. is study uses the method of PLS-SEM.
e data collection method is an e-mail questionnaire. For the PLS-
SEM method, information from the study uses information from 34
top managers in 34 companies who are users of space technology. e
maximum and significant contribution of this study is for identifying
the significant variable that will influence of business performance.
eory and Hypothesis
e study in the field of strategic control, strategy orientation,
and business environment of the company has significantly advanced
in recent years. ree of them have significant impact on a company
for running their business. e results from studies by Johnson et al.,
[33] and Le and Jorma [34] indicate that strategic control have positive
influence on competitive strategy. While other studies suggested
that the competitive strategy have influenced by strategy orientation
[35-37]. According to Kafchehi et al., [37] strategy orientation has
significant influence on competitive strategy. Courtney et al., [38]
explained that business environment can be another variable for
influencing competitive strategy. e studies by Courtney et al., [38]
and Slotegraaf and Dickson [39] have explained that the scanning
process of both internal and external environment can be very
important for developing the strategy.
H1: Strategic control, strategy orientation, and business
environment significantly influences on competitive strategy (Figure 1).
*Corresponding author: Dr. Brian Pratistha, Planning Staff, National Institute
of Aeronautics and Space (LAPAN), Jakarta, Indonesia, Tel: +62812-8440-8172;
E-mail: pratistha_brian@yahoo.co.id
Received August 09, 2018; Accepted September 19, 2018; Published September
25, 2018
Citation: Pratistha B (2018) What should Top Management do for Increasing
Business Performance? Arabian J Bus Manag Review 8: 362.
Copyright: © 2018 Pratistha B. This is an open-access article distributed under
the terms of the Creative Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium, provided the original author and
source are credited.
What should Top Management do for Increasing Business Performance?
Brian Pratistha*
National Institute of Aeronautics and Space (LAPAN), Jakarta, Indonesia
Abstract
There have been many studies conducted on business performance. Nevertheless, research on this issue in
corporate users of space technology has never been done. This study tries to fill the literature gap, particularly on
the use of variables such as strategic control, strategic orientation, business environment, and competitive strategy.
This study employs the Partial Least Square Structural Equation Modelling (PLS-SEM) equation. The unit of analysis
and observation unit of present study are a company that uses consumer technology products, and company
management, respectively. Strategic control, strategic orientation and business environment are the variables that
have a positive and significant impact on competitive strategy and business performance. However, competitive
strategy does not indicate the indirect effect of strategic control, strategy orientation and the business environment
on business performance. This at once denied the results of previous research that makes competitive strategy as
a mediating variable to support business performance. The findings of this research are referred to as business
performance models of enterprise users of aerospace technology.
Figure 1: Model of hypothesis 1.